Free 7-day Trial
All Articles and Columns »

The Best Dogs of the Dow Jones with Highest EPS Growth as of October 2012

Here is an updated sheet of the 10 best Dogs of the Dow. Such stocks have the lowest expected price to earnings ratio and highest dividend yield within the Dow Jones Index. The strategy is to buy 10 stocks of the Dow Jones with the highest dividend yield and lowest price to earnings ratio at the beginning of the year and to hold these stocks for a year. After this period, the investor should sell stocks that are no more Dogs of the Dow and buy therefore new Dogs of the Dow.

The ten cheapest stocks from the Dow Jones have an average dividend yield of 3.50 percent as well as a forward P/E ratio of 11.99. The average P/B ratio amounts to 2.56 and P/S ratio is 2.06. The best yielding stock is still AT&T (T) whose yield is back in the high yield area (5 or more percent). The stock is followed by its competitor Verizon (VZ). Compared to the results of the previous months, no essential changes have occurred.

Here are my favorites with the highest expected 5-Year EPS growth:

Verizon Communications (VZ) has a market capitalization of $126.29 billion. The company employs 188,200 people, generates revenue of $110.88 billion and has a net income of $10.2 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29.380 billion. The EBITDA margin is 26.49 percent (operating margin 11.62 percent and net profit margin 9.20 percent).

Financial Analysis: The total debt represents 23.93 percent of the company's assets and the total debt in relation to the equity amounts to 153.33 percent. Due to the financial situation, a return on equity of 6.45 percent was realized. Twelve trailing months earnings per share reached a value of $1.07. Last fiscal year, the company paid $1.98 in form of dividends to shareholders. The earnings are expected to grow by 15.38 percent for the next year and 8.79 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 41.25, P/S ratio 1.14 and P/B ratio 3.49. Dividend Yield: 4.66 percent. The beta ratio is 0.52.

The Procter & Gamble (PG) has a market capitalization of $193.21 billion. The company employs 126,000 people, generates revenue of $83.68 billion and has a net income of $9.32 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16.5 billion. The EBITDA margin is 19.71 percent (operating margin 15.88 percent and net profit margin 11.13 percent).

Financial Analysis: The total debt represents 22.52 percent of the company's assets and the total debt in relation to the equity amounts to 46.94 percent. Due to the financial situation, a return on equity of 13.86 percent was realized. Twelve trailing months earnings per share reached a value of $3.11. Last fiscal year, the company paid $2.14 in form of dividends to shareholders. he earnings are expected to grow by 8.46 percent for the next year and 8.52 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.52, P/S ratio 2.31 and P/B ratio 3.09. Dividend Yield: 3.21 percent. The beta ratio is 0.43.

General Electric (GE) has a market capitalization of $224.48 billion. The company employs 301,000 people, generates revenue of $147.3 billion and has a net income of $14.37 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $31.02 billion. The EBITDA margin is 21.06 percent (operating margin 13.64 percent and net profit margin 9.75 percent).

Financial Analysis: The total debt represents 63.22 percent of the company's assets and the total debt in relation to the equity amounts to 389.43 percent. Due to the financial situation, a return on equity of 11.06 percent was realized. Twelve trailing months earnings per share reached a value of $1.35. Last fiscal year, the company paid $0.61 in form of dividends to shareholders. he earnings are expected to grow by 12.26 percent for the next year and 12.15 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.78, P/S ratio 1.52 and P/B ratio 1.93. Dividend Yield: 3.20 percent. The beta ratio is 1.61.

Take a closer look at the full table of the cheapest stocks of the Dow Jones. They have an average dividend yield of 3.50 percent as well as a forward P/E ratio of 11.99. The average P/B ratio amounts to 2.56 and P/S ratio is 2.06.

Related Stock Ticker Symbols:

T, VZ, MRK, PFE, GE, JNJ, PG, DD, CVX, JPM

Selected Articles

· 12 Cheapest Large Caps With Highest Expected Growth As Of October 2012

· An Overview Of The Safest High Yield Large Caps At The Market

· The Best Yielding Stock Holdings Of George Soros's Quantum Fund

· 100 Attractive Stocks, Bought By Famous Investment Gurus

· Best Dividend Paying Stock List As Of October 2012

· The Best Dogs Of The Dow Jones As Of September 2012

Dogs of the Dow Jones by Dividend Yield - Stock, Capital, Investment.

About the author:

Dividend
I am a private full time investor searching for investments and investment ideas.

Visit Dividend's Website


Rating: 2.5/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide